Aegon Asset Management adds tobacco to exclusion list

3 minute read

Aegon Asset Management has decided to add tobacco producers to its investment exclusion list. This amendment to the investment policy is in line with the Aegon N.V. Responsible Investment Policy, where the decision to exclude tobacco producers was made public when the Policy and the exclusion list were updated in March 2018.

Our strategy as a responsible investor

We believe investing in the tobacco industry is not compatible with our strategy as a responsible investor, and therefore we decided to end further investment in the industry. Tobacco use is one of the main risk factors for a number of chronic diseases, including cancer, lung diseases and cardiovascular diseases, and kills around six million people each year. Tobacco use also has economic consequences through higher healthcare costs for example.

Divestments

Our decision to exclude tobacco producers has consequences for our equity, credit and high yield funds. In the equity portfolios, relevant listed equities will be sold, while for fixed income in credit and high yield funds we are applying a run-off strategy.

For fixed income there are no immediate effects on the short term because of the run-off strategy. This strategy implies that going forward, we will not buy any new bonds issued by tobacco producing companies.

The prospectus, including the terms and conditions of management and custody, and the fund specifications of the relevant funds remain unchanged.

Please contact your account manager if you have any questions.